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How Does Corporate Information Environment Influence CSR?

Author

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  • Ehsan Poursoleyman

    (Beedie School of Business, Simon Fraser University, Burnaby, BC V5A 1S6, Canada)

  • Amin Pourrezaei Nav

    (Department of Economics and Management, Urmia University, Urmia 5756151818, Iran)

  • Gholamreza Mansourfar

    (Department of Economics and Management, Urmia University, Urmia 5756151818, Iran)

  • Hamzeh Didar

    (Department of Economics and Management, Urmia University, Urmia 5756151818, Iran)

Abstract

This study investigates the impact of outsiders’ demand for more information (or transparency) on corporate social responsibility (CSR) initiatives. Drawing on a dataset of U.S. companies from 2010 to 2023, CSR performance is measured using ASSET4 ratings, while CSR disclosure levels are captured through the number of words and sentences in reports. Utilizing within-industry and -firm OLS regressions, our analyses reveal a positive relationship between the demand for more information and future CSR investments, showing that firms with higher demand for information not only enhance their CSR performance but also expand the length of their CSR reports. These results suggest that increased pressures for information encourage organizations to engage more deeply with social responsibility, resulting in more robust CSR activities and more comprehensive reporting practices. This study contributes to the existing literature by highlighting the strong predictive role of outsiders’ demand for more information in promoting CSR investment and disclosure, and by offering important insights for policymakers and practitioners on fostering corporate responsibility through enhanced transparency.

Suggested Citation

  • Ehsan Poursoleyman & Amin Pourrezaei Nav & Gholamreza Mansourfar & Hamzeh Didar, 2025. "How Does Corporate Information Environment Influence CSR?," IJFS, MDPI, vol. 13(3), pages 1-21, July.
    • Handle: RePEc:gam:jijfss:v:13:y:2025:i:3:p:131-:d:1698403
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